For many years now Member States have engaged in energy transition. This long experience has shown that conventional financing is not enough and financing sustainable energy measures remains a great challenge. For this reason, access to attractive and adequate financing products from the market is needed.
A large number of innovative financing mechanisms have already been invented and implemented across Europe. These include: Energy Performance Contracting for the public and the private sector, energy efficient mortgages, revolving funds, soft loans, public-private companies (third party financing), green bonds, guarantee funds, local public companies or public Energy Service Companies (ESCOs), tax increment financing, local saving accounts, citizens’ cooperatives and crowdfunding.